Subject to any transitional relief, forms and templates applicable before 11pm Thursday 31 December 2020 should be read in conjunction with Supervisory Statement (SS) 2/19, which sets out how the PRA expects firms to interpret EU-based references in reporting and disclosure requirements and regulatory transactions forms.
From 31 December 2024, the PRA is granting Solvency II permissions using a FSMA s138BA rule permission.
Firms wishing to apply should complete the s138BA rule permission application form and any supplementary information forms specific to the permission type as set out on this page.
To apply for permission under FSMA section 138BA to use multiple methods when calculating a Group SCR please complete the s138BA rule permission application form and the following supplementary information form:
To apply for permission under FSMA section 138BA to include overseas sub-groups when calculating a Group SCR please complete the s138BA rule permission application form and the following supplementary information form:
Firms wishing to apply for permission to use an Internal Model or change an Internal Model from 31 December 2024 must apply for permission under section 138BA of FSMA.
A fee is payable for applications for new internal models. Please see Table E in the Fees Part of the PRA Rulebook.
Please complete the s138BA rule permission application form, the Internal Model supplementary information form, and the Internal Model Application Template (IMAT):
Any firm intending to submit an application for permission to use an Internal Model is strongly encouraged to discuss their plans and projected timelines with their supervisor before submitting an application.
Firms should also refer to the following Q&A which provides additional information on the application process:
If any firm is considering making an application under the existing Internal Model approval process before the new rules come into effect on 31 December 2024, they should discuss this with their supervisor.
To apply for permission under FSMA section 138BA to recognise the loss absorbing capacity of deferred tax assets (LACDT), please complete the main s138BA rule permission application form and supplementary information for prior permission for LACDT
To request the modification by consent (MbC) relating to LACDT please use the relevant form on our Waivers and modifications of rules page.
To apply for permission under FSMA section 138BA to apply a Matching Adjustment, please complete the s138BA rule permission application form and the Matching Adjustment supplementary information form:
Supplementary information for application to apply matching adjustment (DOCX)
Any firm intending to submit an application to apply a Matching Adjustment is strongly encouraged to participate in the Application Readiness Assessment Process (ARAP). In order to participate in this process firms should complete the following form:
Application Readiness Assessment Process (ARAP) Form (DOCX)
Firms should refer to the following Q&A for practitioners which provides additional information on the application process. The Q&A was last updated on 7 October 2024 to cover questions raised by firms and other stakeholders in the first three months after the new MA rules came into effect on 30 June 2024.
Matching Adjustment (MA) Application Process Practitioner Q&A (DOCX)
Firms intending to apply for the following own funds permissions under FSMA section 138BA must complete the section 138BA permission application form and provide relevant additional information as set out in the appropriate own funds supplementary information form below. Any firm intending to submit an application for own funds permission should read chapter 1 and the relevant chapter of Statement of Policy Solvency II: The PRA’s approach to insurance own funds permissions and should discuss their plans and projected timelines with their supervisor before submitting an application.
Firms intending to apply for the following own funds permission under FSMA section 138BA should follow the guidance below and should discuss their plans and projected timelines with their supervisor before submitting an application.
If any firm is considering an application in respect of ancillary own funds for an intermediate insurance holding company it should first familiarise itself with the content of (i) Chapter 3 of SoP: The PRA's approach to insurance group supervision and (ii) Chapters 1 and 3 of SoP Solvency II: The PRA's approach to insurance own funds permissions. It may also want to discuss a potential application with its supervisor before submitting an application.
As noted in paragraph 2.1 of the statement of policy (SoP): ‘Permissions for transitional measures on technical provisions and risk-free interest rates’ the PRA generally will not consider new applications for transitional measure on technical provisions (‘TMTP’) permission. Any firm intending to submit an application is strongly encouraged to discuss their plans and projected timelines with their supervisor before submitting an application.
Firms wishing to apply for permission to use the TMTP or to vary an existing TMTP from 31 December 2024 must apply for permission under section 138BA of FSMA.
Please complete the s138BA rule permission application form and the following supplementary information form:
Supplementary information – TMTP permission (DOC)
Any firm intending to submit an application for a TMTP permission should refer to the Transitional Measures on Technical Provisions Part of the PRA Rulebook and the statement of policy (SoP): ‘Permissions for transitional measures on technical provisions and risk-free interest rates’.
To apply for permission under FSMA section 138BA to apply a transitional measure on the risk-free interest rate (TMIR), firms should send a completed application form and supporting evidence to PRA-waivers@bankofengland.co.uk.
To apply for permission under FSMA section 138BA to apply Undertaking Specific Parameters (USP)
For the purposes of determining the Solvency Capital Requirement (SCR) using the standard formula (SF), an undertaking specific parameter (USP) is a parameter specific to a firm, calculated in accordance with SCR-USP Part of the PRA Rulebook, that replaces a standard parameter (within a subset of parameters in the life underwriting risk module, non-life underwriting risk module, or health underwriting risk module). The corresponding concept for a group is a Group Specific Parameter (GSP).
A firm may apply for regulatory permission to use a USP or GSP. When granting a USP permission, the PRA would exercise its powers under section 138BA (s138BA) of the Financial Services and Markets Act (FSMA) 2000 to modify rules within the SCR-SF and SCR-USP Parts of the PRA Rulebook, or to modify the Group Supervision Part for a group to use a GSP.
Requirements relating to USPs and GSPs are set out in the SCR-USP and Group Supervision Parts of the PRA Rulebook, respectively.
Firms and groups seeking to apply for permission to use USPs or GSPs should complete the application form in respect of s138BA permission and submit the following supplementary information form with their application.
Information regarding the PRA’s approach to assessing USP and GSP applications is set out in the Statement of Policy – Solvency II: The PRA’s approach to Standard Formula adaptations.
Firms wishing to apply for permission to use a Volatility Adjustment (‘VA’) or to vary an existing VA from 31 December 2024 must apply for permission under section 138BA of FSMA.
Please complete the s13BA rule permission application form and the Volatility Adjustment supplementary information:
Supplementary information – volatility adjustment permission (DOC)
Send your completed application forms for VA permission to PRA-waivers@bankofengland.co.uk.
Any firm intending to submit an application for a VA permission should refer to chapter 8 of the Technical Provisions Part of the PRA Rulebook and the statement of policy (SoP): ‘Solvency II: Volatility Adjustment Permissions’. Firms are also strongly encouraged to discuss their plans and projected timelines with their supervisor before submitting an application.
Any applicant that is planning to use a new UK based Special Purpose Vehicle should discuss these proposals with PRA authorisations, or where applicable, its usual PRA supervisory contact prior to submitting a formal application for authorisation. Applicants should also refer to the insurance special purpose vehicles page for more information.
On 1 November 2017 we published PS26/17 'Authorisation and supervision of insurance special purpose vehicles'.
We will acknowledge your application when we receive it.
We may contact you for any further information we need to determine your application
If we decide to grant a s138BA rule permission, we will issue an approval letter and a written notice setting out the permission, which entities it applies to, and the time period for which it is valid. If we decide not to approve an application, we will inform you of your options for challenging the decision.
We have a statutory duty to publish details of s138BA rule permissions, unless we consider it inappropriate or unnecessary to do so. Some will be published in abridged form at a firm’s request. Firms can also request that a s138BA rule permission is not published, making arguments on the s138BA rule permission application form.
The consolidated list of Waivers, CRR and Solvency II Permissions granted by us to PRA-authorised firms is currently not being provided. If you wish to discuss your requirements for this report, please contact the following address: PRA-Waivers@bankofengland.co.uk. Alternatively, please see the FCA Register which is the primary public source of PRA Waivers and Permissions data.
Firms are not required to provide details of a precedent direction or written notice when applying for a waiver or modification of PRA rules, a CRR or Solvency II Permission or a s.138BA rule permission.
For information and materials, eg in respect of Single Group ORSA and Single Group SFCR, please see Waivers and modifications of rules.
This section contains templates for specific notifications that an insurance firm may need to make in respect of (i) LACDT and (ii) Standard Formula.
Completed notification forms for both LACDT and Standard Formula should be sent to: SFnotifications@bankofengland.co.uk.
To apply for a Solvency II approval, complete the main application form and, if required, the relevant supplementary information form. Send your application form to S2submissions@bankofengland.co.uk. A fee is payable for applications for new internal models. Please see Table E in the Fees Part of the PRA Rulebook.
Application form: Solvency II approval
Firms are not required to provide details of a precedent written notice when applying for a Solvency II Permission.
Through our authorisations forms, the Bank of England (the ‘Bank’) collects personal data about you. This personal data could include (depending on the application or notification form submitted) personal identification details, contact information, addresses, employment history and information relating to fitness and propriety such as criminal, civil and regulatory matters. Each form clearly states what personal data is being gathered. The Bank may make further enquiries and seek similar information from third parties and other data sources as we think appropriate to identify and verify information that we consider relevant to the application or notification, this could include criminal, credit and other background checks.
The Bank collects personal data to process a range of authorisation applications and notifications, which include:
This information is used to assist the Bank of England in discharging its functions, in particular the statutory functions of the Prudential Regulation Authority under the Financial Services and Markets Act 2000 and other relevant legislation.
In complying with applicable laws and for law enforcement purposes, we may disclose information to any government entity, regulatory authority or to any other person the Bank reasonably considers necessary. This may mean that personal data is transferred outside the United Kingdom. Otherwise, we will not disclose your information without your permission. Your personal data will be retained in accordance with the Bank’s records management schedule.
You have a number of rights under data protection laws. For example, you have the right to ask us for a copy of the personal data the Bank holds about you. You can also ask us to change how we process or deal with your personal data, and you may have the right in some circumstances to have your personal data amended or deleted. To contact us about those rights, including making a request for the personal data we hold about you, or to find out more about privacy and data protection at the Bank, please see the Privacy and the Bank of England page.